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Camera casting shadow or something

Hi all, I'm new to Unity3D. I created a simple scene with a Terrain, Directional Light & some trees and camera which moves around in the scene.

There it is, but the problem is you see the dark circle around the camera. What is it. It is moving with the camera. At first I thought it shadow of the camera, doesn't makes sense, so I test it. I took the camera far from the ground and it became smaller & smaller until it disappeared. Following screen-caps will depict that. please see the next two images (this forum didn't let me add more).

Does anyone know the real answer to this? (reinstalling and increasing shadow distance to 1000 aren't proper solutions). I figure it's something to do with the lightmapping and directional light settings, but I sure can't figure it out.

Does anyone know the real answer to this? (reinstalling and setting shadow distance to 1000 are not proper solutions.) I think it's something with the lightmap and directional light settings, but I can't figure it out.

This idea is not a fix it only changes where the problem happens. Instead of it appearing in front of your scene view it does it 500 0 1000 away. Move scene view around and you will notice flickering out in the distance.

Old post, but I just had the same problem. For me, it was actually the skydome casting a shadow (effectively over everything in the world). The shadow distance is relative to the camera so that was limiting the shadow to the radial area shown. Turning "cast shadows" off on the skydome mesh renderer component fixed it for me. I guess the trick is to look for geometry that's casting a shadow over everything.

I've ran into this a few times. It's a graphic bug with unity. Ever since I upgraded from a gtx 760 to a gtx 1080 I've never had the problem since. So I think it's just the editor not working well with old cards